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Setting up a PMA (Penanaman Modal Asing) company in Indonesia involves establishing a foreign-owned company in the country. Here’s a brief description of the process:

Legal Framework: PMA companies are governed by the Indonesian Investment Coordinating Board (BKPM) and must adhere to the Foreign Investment Law. They are generally required to have at least 1 billion IDR (Indonesian Rupiah) in paid-up capital, though this amount can vary depending on the industry and business activities.

Approval Process:

Initial Approval: Foreign investors must obtain an investment approval from BKPM. This involves submitting a detailed investment plan and obtaining a principal license.
Company Establishment: After receiving initial approval, the company must be legally incorporated by registering with the Ministry of Law and Human Rights to obtain a deed of establishment.
Business License: Obtain a business license (Izin Usaha) from BKPM, which allows the company to commence operations.
Local Representation: PMA companies are required to have a local representative or a local partner, though full ownership is possible in certain sectors.

Tax Registration: Register with the Tax Office to obtain a Tax Identification Number (NPWP).

Operational Requirements: Ensure compliance with local regulations, including obtaining necessary operational licenses, adhering to labor laws, and meeting environmental regulations if applicable.

The process can be complex, so consulting with local legal and business experts is often advisable to ensure compliance and smooth establishment.

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